With BitGo, Shinhan Bank expands the global cryptocurrency sector

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Shinhan Bank is widening its global market for virtual assets, including cryptocurrencies. It was agreed through business agreements with digital asset custodial (consignment and storage) businesses to discover a diversified asset portfolio business model.

On the 28th, Shinhan Bank announced that it had signed a business agreement with BitGo, a US digital asset financial services firm, and Korea Digital Asset Management (KDAC), a custodial company, to develop a cooperation framework in the field of digital assets.

Through this arrangement, the three companies have agreed to jointly promote the creation of custodial solutions and to provide all digital properties, including virtual assets, with custodial services. Moreover, it plans to progressively extend the basis for collaboration with various external partners, such as global providers of virtual properties.

Bitgo is the largest company in the world that handles more than 20 percent of the bitcoin transactions in the world and has over 400 institutional customers worldwide. In particular, it has a service that can entrust digital assets to customers in Asia in a 100 per cent offline environment. In Japan, the service is used by 25 percent of virtual asset exchanges already licensed by the Japan Financial Services Agency (FSA).

Digital Innovation Director Kim Chul-ki of Shinhan Bank said,

“Through cooperation with three companies, we plan to focus our custody service capabilities for institutional investors. Through cooperation with partners, we will continue to develop a business model that can improve customer convenience and diversify our asset portfolio. I will excavate it.”

Earlier, on the 7th, Shinhan Bank promoted a strategic equity investment in KDAC, which was founded to enter the digital asset custody market by Cobit, a blockchain technology firm, and Fairsquare Lab, a digital asset research company.

In the meantime, the Relevant Financial Transaction Information (Special Act) Reporting and Usage Act, which governs related industries such as blockchain and cryptocurrency, will be adopted next year in March. Custody of digital assets is an environment where the enforcement capabilities of banks and the expertise of custody can be used well, so there is a high interest. By offering stable and convenient digital asset management services, Shinhan Bank aims to respond preemptively to the rapidly evolving digital asset market, such as implementing the Special Act.

For a range of products and services, such as gold protection service, doctor loan qualification verification, and policy loans for small businesses, Shinhan Bank uses blockchain technology. Business prospects, such as involvement in the central bank’s digital currency technology verification project and the discovery of financial services using digital assets, have recently been actively promoted.

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